2 Canadian Stocks to Buy With Dividends Yielding More Than 3%

Are you interested in buying dividend stocks? Here are two picks that yield more than 3%!

| More on:
Increasing yield

Image source: Getty Images

If you’re interested in building a source of passive income, it’s imperative that you start investing in dividend stocks. Great dividend stocks pay shareholders on a regular basis. However, if you want to invest in the best, then there are two characteristics that you should be looking for. First, invest in dividend stocks that increase their distribution on a yearly basis. Second, investors should look for stocks that offer dividend yields of at least 3%.

In this article, I’ll discuss two Canadian stocks that satisfy both criteria.

Start with this massive company

Telus (TSX:T)(NYSE:TU) is the first Canadian dividend stock that investors should consider buying today. As you may know, Telus is one of the Big Three Canadian telecom companies. In fact, alongside BCE, Telus operates the largest telecom network in the country. Its coverage area accounts for 99% of the Canadian population. At the end of 2021, Telus reported that it was supporting 9.29 million mobile phone subscriptions, 2.13 connected devices, 2.27 internet customers, and 1.27 million television subscribers.

While all of those numbers may be impressive, Telus’s business is so much more than what it does within the telecom industry. Over the years, Telus has established itself as a true competitor within the healthcare space. Today, it offers a suite of professional and personal healthcare solutions. This includes its line of electronic medical record solutions and MyCare, which is its app that allows users to connect to healthcare professionals from the comfort of their own homes. Entering this year, Telus’s healthcare business covered 20.6 million patients.

With respect to its dividend, Telus is an outstanding stock. The company has managed to increase its distribution in each of the past 17 years. Today, Telus stock offers investors a forward dividend yield of 4.50%. With its strong business supporting a healthy dividend, investors should really consider buying this stock today.

Invest in one of the Canadian banks

Investors should also consider buying shares in the Canadian banks. These companies have always been attractive to Canadians because of their massive presence within the country’s economy. For example, four of the eight largest companies in Canada (by market cap) are banks. If I could only invest in one Canadian bank, it would be Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).

What interests me about Bank of Nova Scotia is its dedication to growing its international presence. In 2021, nearly a third of its earnings came from sources outside of Canada. In addition, in the second quarter of 2022, it appears that Bank of Nova Scotia’s international banking segment drove the company’s growth. Over that period, its international banking segment saw a 50% year-over-year increase in net income.

Bank of Nova Scotia is known for its long history of paying shareholders. It has been distributing a dividend in each of the past 189 years. Further, Bank of Nova Scotia has managed to increase its distribution over the past 11 years. The cherry on top of a great dividend may be the company’s forward dividend yield. Today, Bank of Nova Scotia stock offers investors a yield of 5.38%. This stock is a must-have in your dividend portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren has positions in BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA and TELUS CORPORATION.

More on Dividend Stocks

grow dividends
Dividend Stocks

1 Cheap Stock to Turn a $20,000 TFSA Into $267,000

If you're looking to boost your TFSA, you need a cheap stock that you can hold for decades. And I…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 of the Best Monthly Passive-Income Stocks to Buy in Canada Right Now

Here are two of the best Canadian monthly passive income stocks you can consider buying right now to hold for…

Read more »

stock analysis
Dividend Stocks

3 TSX Stocks I Will “Never” Sell

Few companies offer a powerful enough combination of dividends and growth potential to deserve a permanent place in your portfolio.

Read more »

value for money
Dividend Stocks

2 Cheap TSX Stocks for TFSA and RRSP Investors to Buy Now

These stocks look attractive today to buy for a TFSA or RRSP portfolio.

Read more »

Increasing yield
Dividend Stocks

3 TSX Stocks With High Dividend Yields

These three high-yielding dividend stocks would be excellent additions to your portfolio in this volatile environment.

Read more »

Payday ringed on a calendar
Dividend Stocks

New Investors: 3 Top TSX Dividend Stocks That Pay Cash Monthly

Canadian investors looking for monthly dividends have plenty of options on the TSX. Here's three of my favourite stocks for…

Read more »

woman data analyze
Dividend Stocks

These U.S. Stocks Are No-Brainer Additions to Your Portfolio

Buy these two no-brainer U.S. stocks if you want to gain exposure to international stocks in your self-directed portfolio.

Read more »

Value for money
Dividend Stocks

1 Value Stock Every Canadian Investor Should Own

This value stock not only has a solid present, but a stable future at incredibly cheap and even oversold prices!

Read more »